HOMEWORK OF CHAPTER 1

1. Marketing is the process by which companies create value for customers and build
strong customer relationships in order to capture value from customers in return.
2.
The marketing process involves five steps. The first four steps create value for customers.
First, marketers need to understand the marketplace and customer needs and wants. Next,
marketers design a customer-driven marketing strategy with the goal of getting, keeping,
and growing target customers. In the third step, maketers construct a marketing program
that actually delivers superior value. All of these steps form the basis for the fourth step,
building profitable customer relationships and creating customer delight. In the final step,
the company reaps the rewards od strong customer relationships by capturing value from
customers.
3. Outstanding marketing companies go to great lengths to learn about and understand their
customers’ needs, wants and demands. This understanding helps them to design want-
satisfying market offerings and build value-laden customer relationships by which they
can capture customer lifetime value and greater share of customer. The result is increased
long-term customer equity for the firm.
4. Marketing management can adopt one of five competing market orientations. The
production concept holds that management’s task is to improve production efficiency and
bring down prices. The product concept holds that consumers favor products that offer
the most in quality, performance and innovative features. The selling concept holds that
consumers will not buy enough of an organization’s products unless it undertakers a
large-scale selling and promotion effort. The marketing concepts holds that achieving
organizational goals depends on determining the needs and wants of target markets and
delivering the desired satisfactions more effectively and efficiency than competitors do.
The societal marketing concept holds that generating customer satisfaction and long-run
societal well-being through sustainable marketing strategies is key to both achieving the
company’s goals and fulfilling its responsibilities.
5. Customer relationship management is the process of building and maintaining profitable
customer relationships by delivering superior customer value and satisfaction. The aim of
customer relationship management is to provide high customer equity, the total combined
customer lifetime values of all of thecompany’s customers.
6.
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of getting, keeping, and growing target customers. In the third
step, marketers construct a marketing program that actually
delivers superior value. All of these steps form the basis for the
fourth step, building profitable customer relationships and creat
ing customer delight. In the final step, the company reaps the
rewards of strong customer relationships by capturing value from
customers.